InvestorQ : How do you see the stock markets panning out on Wednesday the 09th November 2022?
NISHA Nayak made post

How do you see the stock markets panning out on Wednesday the 09th November 2022?

Priyanka N answered.
3 weeks ago

The markets return to trading after a trading holiday on Tuesday due to Guru Nanak Jayanti. On Monday, the bullish sentiments continued on the Nifty and despite the intermittent volatility during the day, the Nifty closed above the 18,200 mark. Britannia led the rally supported by SBI, both reacting to their positive numbers put out in the quarter.

In terms of market structure on Monday, the advance decline ratio was finally positive at 34:15. Overall, it was the pharma and healthcare stocks remained under pressure after disappointing numbers from Divi’s. VIX hovered around the 16 levels, showing a largely buy on dips market and that has been giving support to this market amidst all this volatility.

Foreign portfolio investors or FPIs were net buyers to the tune of Rs.1,949 crore on Monday even as domestic funds and LIC sold stocks worth Rs.844 crore. This has been the general trend for the last couple of weeks as domestics have been on the sell side. In the first 5 days of November, FPIs have already infused over $2 billion into Indian equities on Fed cues.

Global cues are positive ahead of key data points to be announced. On Tuesday, the Dow was up 334 points and NASDAQ was up 52 points showing positive vibes. Europe was up across the board even. The SGX Nifty is now up, in early trades on Wednesday, about 45 points higher early trades as the markets resume after a trading holiday on Tuesday.

In terms of outlook, the markets have held strong till now. For this week, there are some very important data points that will set the course of the markets. There is the US inflation on Thursday which is expected to taper lower. Even the India CPI inflation is likely to be lower by 20 bps. IIP is expected to bounce back to positive from the negative figure reported last month. However, one key factor would be the outcome of the US mid-term elections that was conducted on Tuesday. Apart from China cues, the US election outcome will decide who gets the majority in the house, although the republicans now look likely.